Automotive Smart Key Market - By Application (Single Function, Multi-function), By Technology (Remote Keyless Entry, Passive Keyless Entry), By Installation (OEM, Aftermarket), Forecast 2023 - 2032

Automotive Smart Key Market Size

Automotive Smart Key Market size exceeded USD 12 billion in 2022 and is anticipated to expand at over 8% CAGR between 2023 and 2032. Automotive smart keys have gained popularity over the last decade due to benefits such as increased vehicle security. Companies that manufacture smart keys, such as Honda, are implementing features of high-end luxury cars in budget cars. The emergence of advanced technologies, which use radio frequency (RF) signals and convert them into digital information, has augmented the prevalence of smart keys in the automotive sector. Advancements in automotive technology as well as an increase in vehicle thefts are likely to propel the development of smart keys, which will lead to market growth.
 

An automotive smart key fob is an electronic device that controls the central locking system and other functions of a vehicle. It is typically a small handheld device that uses radio frequency technology to communicate. The key fob, also referred to as a keyless entry remote or a car key remote, can be used to unlock doors, start the engine, and even control the car audio system of the vehicle. Moreover, this device type is becoming more common in modern vehicles, driving automotive smart key market growth.
 

Advanced features & technologies, such as keyless entry, remote start, and keyless ignition, are frequently included with automotive smart key systems. The addition of these features raises the total cost of the smart key system. The high cost of smart key technology may limit widespread adoption, particularly in price-sensitive market segments. Furthermore, smart key systems can be vulnerable to hacking and unauthorized access owing to the reliance on wireless communication and digital signals. The security of smart key systems is of utmost importance as any compromise in security can lead to vehicle theft or unauthorized access to personal data. Ensuring robust security measures is also crucial to building trust & confidence in technology.
 

COVID-19 Impact

The automotive smart key market experienced disruptions in the global supply chain due to factory closures, restrictions on international trade, and logistics challenges. These disruptions delayed the production & distribution of smart key components, thereby affecting the overall market growth. The pandemic led to a significant decline in vehicle sales globally. Lockdowns, economic uncertainties, reduced consumer spending, and declined car sales negatively impacted the automotive industry including the adoption of advanced features such as smart key systems.
 

Automotive Smart Key Market Trends

The increasing demand for luxury cars equipped with advanced automotive technology is expected to boost market growth. Electric & hybrid cars with advanced safety & security features are also being introduced into the market, further increasing demand for automotive keys. Rising technological advancements in vehicle security & safety as well as the use of other technologies, such as passenger Vehicle telematics systems and driving assistance systems, are likely to augment market growth. The demand for automotive keys is estimated to rise owing to the incorporation of advanced technologies, such as automotive telematics and advanced driver assistance systems (ADAS), in car safety & security.

Automotive Smart Key Market Analysis

Based on application, the automotive smart key market is segmented into single function and multi-function. The multi-function segment accounted for over USD 7.5 billion in 2022 and is set to grow significantly. Multi-function applications expand the capabilities of smart key systems, offering users a more comprehensive and convenient experience. These applications can include features such as remote start, trunk release, vehicle locator, automatic climate control activation, and personalized settings. By providing additional functionalities, smart key systems enhance user convenience and satisfaction, making them a desirable feature for vehicle buyers.
 

Based on technology, the automotive smart key market is segmented into remote keyless entry and passive keyless entry. The passive keyless entry technology segment held 40% of the market share in 2022 and is poised to observe lucrative pace by 2032. The rapidly expanding passive keyless entry (PKE) market is projected to maintain its dominance throughout the forecast period. The rising demand for PKE is primarily attributed to its automated technology, which operates when the user or driver is close to the vehicle.
 

In contrast to a standard remote keyless entry (RKE) device, which requires the user to hold the device and push a button to lock or unlock the vehicle, the majority of PKE devices can be operated while stored in the user's pocket or bag. Many automobile manufacturers are focusing on PKE devices to provide customer comfort, further augmenting market demand.
 

North America automotive smart key market captured 30% of the revenue share in 2022. The region is estimated to maintain its dominance over the forecast period owing to the presence of prominent luxury car manufacturers including BMW, Mercedes-Benz, and Audi. These companies are significantly contributing to technological advancements by developing advanced smart key fobs for their vehicles. Furthermore, the rising penetration rate of connected cars is anticipated to drive regional growth.
 

Automotive Smart Key Market Share

Some of the major players operating in the automotive smart key market are :

• Alpha Corp.
• Continental AG
• Denso Corporation
• HELLA GmbH & Co. KGaA
• Huf Hulsbeck & Furst GmbH & Co. KG,
• Hyundai Mobis Ltd.
• Minda Corp. Ltd.
• Robert Bosch GmbH.

These players focus on strategic partnerships and new product launches & commercialize for market expansion.
 

Automotive Smart Key Industry News

• In April 2023, Car Keys Express, a U.S. company that deals with automotive key replacements, announced the upcoming release of the Universal Smart Key. The product is expected to begin shipping in the fourth quarter of 2023.
   

This automotive smart key market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Application

• Single function
• Multi-function

By Technology

• Remote keyless entry
• Passive keyless entry

By Installation

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa